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July 20, 2026
Practices Collection Showcase: Innovative Application of Carbon Label and Carbon Reduction Integrated Supply Chain Management (Vol. 5) Requiring life cycle CO2 emissions calculation, reduction, and compensation for carbon efficient and climate neutral IT
Lately, the report of Practices Collection-Innovative Application on Carbon Label and Carbon Reduction Integrated Supply Chain Management was jointly released within the collaboration between International Green Purchasing Network (IGPN) and the One Planet Network Sustainable Public Procurement (SPP) Programme, which was produced by IGPN Secretariat-China Environmental United Certification Center (CEC).
The Practices Collection brings together innovative supply chain practices from seven organizations across four countries: China, the United States, Thailand, and the Netherland. By summarizing practical experience and demonstrating phased achievements, the Practices Collection effectively enhances supplier capacity, promotes the adoption of carbon labelling, and stimulates market and supply-side demand for sustainable products and services.
Practice #5｜Requiring life cycle CO2 emissions calculation, reduction, and compensation for carbon efficient and climate neutral IT products
Theme: Public institute supplier management
Core Content
This practice focuses on requiring life cycle CO2 emissions calculation, reduction, and compensation for carbon efficient and climate neutral IT products of procurement strategy “Procurement with impact” launched by the Government of the Netherlands. Through the procurement rules, requirements and reporting mechanisms for calculating, reducing and compensating CO2 emissions, contractors are committed to take actions to reduce CO2 emissions in the supply chain, hence to fulfill the government's climate target.
It is essential to be highlighted that the practice has combining economic measures such as carbon emission reduction and carbon footprint compensation, and also introducing incentives for purchasing carbon credits in accordance with stricter standards, has enhanced the willingness of participants to reduce emissions.
Innovation in Supply chain Management
This practice demonstrates how can facilitate innovation from aspects of full-process low-carbon target embedding, standard-linked tender incentives, regular-report dynamic supervision in supply chain management:
Full-process low-carbon target embedding：The government’s sustainability commitments (with references to the Paris agreement, the Dutch climate agreement, its procurement strategy, etc.) and the main sustainability objectives are described in the document of the general context, framework, and conditions of the contracts, sustainability are included in procurement procedures;
Standard-linked tender incentives: In the technical specifications, contractors were required to provide the carbon footprint of the products purchased under the contract, to provide support and define actions to contribute to the overall IT carbon footprint, to compensate the estimated carbon footprint emissions of the products purchased through the appropriate compensation programmes, meanwhile, if suppliers committed to buy credits from projects complying with stricter sustainability standards, points were awarded;
Regular-report dynamic supervision: Regular monthly and yearly reports to monitor contract deployment and the contribution to the organization’s corporate responsibility goals were compulsory required to the contractors. In the monthly sales reports, contractors had to provide, for each purchased product, their carbon footprint and compensation, among other information. In the yearly reports on corporate responsibility, information of CO2 emission and compensation were required.
The Netherland“Procurement with impact”procurement practice model integrates carbon footprint control, carbon credit offsets, tender rewards and ongoing oversight. It offers an easy-to-follow template for public agencies to buy low-carbon IT goods and better manage suppliers’ carbon emissions.
Learn more at the report Practices Collection: Innovative Application on Carbon Label & Carbon Reduction Integrated Supply Chain Management.
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